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Spring Statement 2019 – The Chancellor’s pre-Brexit gift from the OBR won’t go far

Thursday March 14th, 2019

Chief Economist at KPMG in the UK,  highlights the limited headroom the Chancellor has despite the improved revenue forecasts.Government Opportunities

Yael Selfin, Chief Economist at KPMG in the UK highlights the limited headroom the Chancellor has, despite the improved revenue forecasts:

“Despite the downward revision to GDP forecasts, the Chancellor was given an additional £11bn headroom today to spend, thanks to better revenue forecasts by the OBR.

The larger war chest of £26.6bn will not go far enough in the event of a No-Deal Brexit, as the economy will require a significant boost to counter the shock.

The much anticipated Spending Review will have room for governmental spending to rise by 3% if Brexit goes smoothly and if the Chancellor decides to spend all of his savings pot. That will be better than he’s promised so far, but may not be enough to address UK twin challenges of low productivity and inequality completely.”

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